Correlation Between Husteel and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Husteel and KTB Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Husteel and KTB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and KTB Investment Securities, you can compare the effects of market volatilities on Husteel and KTB Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Husteel with a short position of KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and KTB Investment.
Diversification Opportunities for Husteel and KTB Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Husteel and KTB is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Husteel and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities and Husteel is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Husteel are associated (or correlated) with KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Husteel i.e., Husteel and KTB Investment go up and down completely randomly.
Pair Corralation between Husteel and KTB Investment
Assuming the 90 days trading horizon Husteel is expected to generate 0.88 times more return on investment than KTB Investment. However, Husteel is 1.14 times less risky than KTB Investment. It trades about 0.07 of its potential returns per unit of risk. KTB Investment Securities is currently generating about 0.02 per unit of risk. If you would invest 381,500 in Husteel on November 3, 2024 and sell it today you would earn a total of 63,000 from holding Husteel or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Husteel vs. KTB Investment Securities
Performance |
| Timeline |
| Husteel |
| KTB Investment Securities |
Husteel and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and KTB Investment
The main advantage of trading using opposite Husteel and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel position performs unexpectedly, KTB Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KTB Investment will offset losses from the drop in KTB Investment's long position.| Husteel vs. ITM Semiconductor Co | Husteel vs. Mobileleader CoLtd | Husteel vs. Innowireless Co | Husteel vs. KMH Hitech Co |
| KTB Investment vs. Dongbang Ship Machinery | KTB Investment vs. Tuksu Engineering ConstructionLtd | KTB Investment vs. Keyang Electric Machinery | KTB Investment vs. Sam Yang Foods |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |